Business Segment Information

3 Months Ended

Jun. 30, 2015

Business Segment Information

Business Segment Information

10.Business Segment Information

We currently operate in three reportable segments: Roadway Sensors, Transportation Systems and Performance Analytics.

The Roadway Sensors segment provides hardware and software products to multiple segments of the ITS market. These various vehicle detection and information systems are used for traffic intersection control, incident detection and roadway traffic data collection applications. These include, among other products, our Vantage, VantageNext, VersiCam, Vantage Vector, SmartCycle, SmartSpan, Pegasus, Velocity, P10, P100 and Abacus products.

The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the ITS industry. During Fiscal 2013, this segment included the operations of MET, which specializes in 511/Advanced Traveler Information Systems and offers predictive weather and ClearPath Weather management tools that allow users to create solutions to meet roadway maintenance decision needs. As of April 1, 2013, the predictive weather and ClearPath Weather services were reassigned to the Performance Analytics segment to better align our predictive weather and traffic capabilities, resources and initiatives.

The Performance Analytics segment includes our performance measurement and information management solution iPeMS, a specialized transportation performance measurement and traffic analytics solution, as well as ClearPath Weather, our road-maintenance application, and ClearAg, our precision agriculture solution. iPeMS provides big data and software analytics solutions that help determine current and future traffic patterns, permitting the effective performance analysis and management of traffic infrastructure resources. ClearPath Weather provides winter road maintenance recommendations for state agencies, municipalities and for commercial companies. Our ClearAg platform provides access to a comprehensive database of weather, soil and agronomic information essential to making informed agricultural decisions.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1). Certain corporate expenses, including interest and amortization of certain intangible assets, are not allocated to the segments. The reportable segments are each managed separately because they manufacture and distribute distinct products or provide services with different processes. All reported segment revenues are derived from external customers.

The following table sets forth selected unaudited consolidated financial information for our reportable segments for the three months ended June 30, 2015 and 2014:

	Roadway Sensors		Transportation Systems		Performance Analytics			Total
	(In thousands)
Three Months Ended June 30, 2015
Total revenues	$	9,905	$	7,378	$	1,082		$	18,365
Segment operating income (loss)	2,602		927		(1,666		)	1,863
Three Months Ended June 30, 2014
Total revenues	$	9,020	$	7,665	$	1,431		$	18,116
Segment operating income (loss)	1,797		854		(694		)	1,957

The following table reconciles total segment income to unaudited consolidated income from continuing operations before income taxes:

	Three Months Ended
	June 30,
	2015			2014
	(In thousands)
Segment operating income:
Total income from reportable segments	$	1,863		$	1,957
Unallocated amounts:
Corporate and other expenses	(2,217		)	(1,929		)
Amortization of intangible assets	(92		)	(119		)
Change in fair value of contingent consideration	—			(4		)
Other expense, net	—			(3		)
Interest income, net	4			1
Loss from continuing operations before income taxes	$	(442	)	$	(97	)